Launch of the new Enjoy S9: a more luxurious and comfortable experience, creating a new level of intelligence. The three-dimensional size and price are comparable to 56E, and the space layout and comfort experience can be compared to the 78S. The Huawei smart cockpit Harmony 4 & intelligent driving ADS3.0 is expected to disrupt traditional luxury cars. The target customer base is senior white-collar workers and second-generation business/executive business group/family of three or four. The model mainly targets the 56E+78S (0.4 million yuan level and above) executive luxury market with a market capacity of about 0.5-0.6 million units. The market segment has a high concentration, an autonomous penetration rate of only 8.3% in 2023, and there is plenty of room for autonomous breakthroughs. We believe that the Xiangjie S9 is expected to replicate the M9's popular model path. The sales volume of pure electric models is predicted at a steady rate of 1900-3100 units/month, and the sales volume of extended-range models is predicted at a steady rate of 5900-15,000 units/month.

Xiangjie S9 sales forecast: We believe that the main sales volume of the Xiangjie S9 comes from four aspects: 1. B/G sales. Here, consider the conversion of the Hongqi high-end sedan Hongqi H9, Hongqi E-HS9 and the traditional commercial vehicle Audi A6L; 2. 56E tram conversion; 3. Flat-price 56E fuel vehicle conversion; 4. High-price 78S fuel vehicle siphon conversion. At the same time, we believe that the total steady state monthly sales volume of the Xiangjie S9 is expected to exceed 10,000 in terms of design language, target market, and competitive advantage. Drawing on M9's sales performance in its market segments, through sensitivity analysis, it is estimated that the total steady state monthly sales volume of the Xiangjie S9 pure electric+extended range models is expected to exceed 10,000.

The new car cycle has begun, and Huawei Smart Choice is empowering it to create a new growth pole: According to BAIC's plan, several new cars will be launched one after another in 2024, including the Alpha S5, the Enjoy S9, and the Koala 5-seater version. Among them, the Huawei Smart Choice will deeply empower the Enjoy S9. The key innovation is the end-to-end architecture of the GOD (General Obstacle Detection) and PDP (Predictive Decision Control) networks. The key innovation is the end-to-end architecture of GOD (General Obstacle Detection) and PDP (Predictive Decision Control) networks, which has greatly improved the safety and driving experience of intelligent driving, and is optimistic that the Enjoy S9 will inject new growth impetus into BAIC New Energy.

Profit forecast and valuation: Maintain the 2024-2026 revenue of 45.557, 81.868, and 113.175 billion yuan, and net profit to mother of -4.751, -1.476, and 2.992 billion yuan, corresponding PS of 1.1, 0.6, and 0.4 times, respectively, maintaining the “recommended” rating.

Risk warning: As far as the benchmark M9 is concerned, the M9 market segment structure is highly fault-tolerant. The listing provides extended/electric alternatives. The channel exposure is better and the positioning is clearer. Therefore, it is necessary to pay attention to risks such as the penetration rate of the high-end new energy market falling short of expectations; increased competition in public opinion and price wars; and falling short of expectations in the construction of delivery and pick-up channels.